Major Streaming Companies Threatened by Fortnite as Gaming Communities Capitalize on eSports Explosion

NEW YORK, January 23, 2019 /PRNewswire/ --

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Analysts are now calling eSports and egaming the greatest investment opportunity of the past few years, and the proof is in the threat it poses to competitors. In a recent letter to shareholders, Netflix (NASDAQ: NFLX) wrote, "We compete with (and lose to) Fortnite more than HBO." Multiplayer video games like "Fortnite," which raked in a massive $2.4-billion in digital revenue last year and is one of the fastest-growing games of all time, have evolved into a popular spectator sport where gaming enthusiasts spend hours watching others play online. Major streaming companies such as Netflix are now in competition for screen time with eSports, and they're worried that the growing youth demographic is starting to find their primary source of entertainment from YouTube or Amazon's (NASDAQ:AMZN) Twitch. Chinese social media giant Tencent Holdings Ltd (OTC: TCEHY), which holds a 40% stake in Epic Games (Fortnite's developer), plans to invest $150-million a year in eSports, a burgeoning industry that's already generating up to $1-billion in revenue for Activision Blizzard Inc. (NASDAQ: ATVI). But for those who want to get in early on the eSports gold rush, investors should look at Enthusiast Gaming (TSX-V:EGLX) (OTC:EGHIF), who has managed to capture the largest gaming network in North America in three short years.

Online networks fuelling the growth of eSports 

Huge gaming networks such as Enthusiast Gaming (TSX-V:EGLX) (OTCQB:EGHIF) are best positioned to cash in on the upcoming eSports investment rush. Online gaming communities form the most crucial link within the eSports ecosystem. These networks are to eSports what the nation's sports bars and living rooms are to the NFL and MLB - serving as a crucial hub for the growth of a real community while propelling the eSports engine, driving the popularity of games such as Fortnite. Let's take professional sports as an analogy: A first-time viewer watching a baseball game, for instance, may have no notion of what's happening. Fans and enthusiasts are an outgrowth of a real community of passionate people, sharing their love and discussing strategies and techniques. With the Internet, gamers can now visit these forums and websites to get research on how to play the game better, finding like-minded peers to share their enthusiasm and build an authentic community.